What Exactly Does Nvidia Do?
While Nvidia (NASDAQ: NVDA) stock has soared in popularity as a way to gain artificial intelligence (AI) exposure, many investors aren't sure what the company does. Maybe they've heard of graphic processing units (GPUs), maybe they've heard of data centers, or maybe they've heard of AI. The exact nature of Nvidia's business, though, may remain shrouded in mystery.
One of the best ways to ensure investing success is to have a thorough understanding of what companies do before an investor clicks the buy button. Since Nvidia's business is more than just AI, it's worth taking a closer look at what it exactly does.
The company organizes its business in two segments: there's compute and networking, and there's graphics. Accounting for the lion's share of Nvidia's business -- 78% of revenue and more than 97% of operating income for fiscal 2024 -- the compute and networking segment is where Nvidia's AI exposure is located. The company's accelerated computing platforms, for example, help data centers manage the extraordinary computing demands of AI. According to the company, its data center solutions "can scale to tens of thousands of GPU-accelerated servers interconnected to function as a single giant computer."
Source Fool.com
